11-02-2025
Dubai: Gold prices slip Dh2 per gram after reaching record high late Monday
Gold prices in Dubai slipped on Tuesday morning after reaching a record high late on Monday.
The 24K variant of the yellow metal fell Dh2 per gram to Dh351.25 per gram at the opening of the markets on Tuesday while 22K lost Dh1.75 per gram to Dh327. Among the other variants, 21K and 18K opened lower at Dh313.5 and Dh268.75 per gram, respectively.
Globally, gold was trading at $2,916.66 per ounce, up 0.35 per cent at 9.15 am UAE time. It hit a record high of $2,939.8 per ounce earlier in the day.
Gold has been rallying over the past few days due to US President Donald Trump imposing a 25 per cent tariff on aluminium and steel, causing concern among investors about trade war escalating among the world's top economies.
Joe Maher, assistant economist at Capital Economics, said precious metals have been one of the best-performing asset classes of 2025 so far.
'That is despite no clear help from gold's traditional drivers, such as the dollar and real yields. Indeed, the historically inverse relationship between the 10-year US TIPS yield and the gold price has been weak for some time,' he said.
'Instead, we suspect gold has benefitted from investors' fears around the possibility of another trade war. Concerns that gold may get caught in the trade war crossfire may also have led US investors to buy up gold in order to get ahead of any future tariffs that might affect US gold imports. This may partly explain the recent stockpiling of gold on the Comex in the US,' added Maher.
